Legal Question in Banking Law in India

Attachment of properties under Sarfaesi

In an instance where a bank issued OTS and some gauarntors withdrew their properties by making part payments, can the bank invoke SARFAESI attaching other co-guaranteed properties claiming that OTS was not honoured in full?


Asked on 12/27/07, 12:21 am

6 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: Attachment of properties under Sarfaesi

release of one or more co-guarantors by the creditor would not discharge the other guarantors. For default in adhereing to the terms of OTS, the Bank can certainly proceed under the SARFAESI Act against those who have not been released by it from their obligations to it.

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Answered on 12/27/07, 7:30 pm
G. M. Gupta gmguptaandassociates

Re: Attachment of properties under Sarfaesi

it depends that how much responsibility yu have taken. however i can advice without discussing in detail

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Answered on 1/13/08, 3:45 am
Vijay Chandavale Advocate Vijay Chandavale & Associates

Re: Attachment of properties under Sarfaesi

yes bank has such right as along as the OTS is not complied with. You have take OTS very seriously . No court can direct any bank to have OTS in particluar fashion . The Court can at the most see that the OTS is implemented in proper fashion

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Answered on 1/07/08, 8:58 am
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Attachment of properties under Sarfaesi

It depands on the Bank Policies

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Answered on 12/27/07, 11:54 pm

Re: Attachment of properties under Sarfaesi

No.However it solely depends upon bank policy and RBI direction.

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Answered on 12/27/07, 11:44 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Attachment of properties under Sarfaesi

Already replied

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Answered on 12/30/07, 12:32 am


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